Monday, 28 March 2011

U.S. dollar, usually world’s safe haven, declining despite plenty of global turmoil

Neil Irwin
Washington Post

When the world is in turmoil, investors have usually had one automatic response: Put money into dollars, viewed as the global safe harbor.

But that’s not happening in this tumultuous year. Even with the Middle East in conflict, Japan in disarray after a series of disasters and Europe facing a debt crisis, the dollar has been gradually falling in value against other major currencies. Having fallen relative to the euro, pound and yen in recent months, the dollar is down 7 percent against a basket of six major currencies since Jan. 7 and 14 percent since June.


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